Hillary Inc. (Page 2)

A host of prominent Republicans fall under Penn's purview. B-M's Washington lobbying arm, BKSH & Associates, is run by Charlie Black, a leading GOP operative who maintains close ties to the White House, including Karl Rove, and was a partner with Lee Atwater, the consultant who crafted the Willie Horton smear campaign for George H.W. Bush in 1988. In recent years Black's clients have included the likes of Iraq's Ahmad Chalabi, the darling of the neocon right in the run-up to the war; Lockheed Martin; and Occidental Petroleum. In 2005 he landed a contract with the Lincoln Group, the disgraced PR firm that covertly placed US military propaganda in Iraqi news outlets.

Black is only one cannon in B-M's Republican arsenal. Its "grassroots" lobbying branch, Direct Impact--which specializes in corporate-funded astroturfing--is run by Dennis Whitfield, a former Reagan Cabinet official, and Dave DenHerder, the political director of the Bush/Cheney '04 campaign in Ohio. That's not all. B-M recently partnered with lobbyist Ed Gillespie, the former head of the Republican National Committee, in creating the new ad firm 360Advantage, run by two admen for the Bush/Cheney campaigns. Its first project was a campaign against "liberal bias" in the media for the neoconservative Weekly Standard magazine.

As expected with such a lineup, B-M has a highly confrontational relationship with organized labor. "Companies cannot be caught unprepared by Organized Labor's coordinated campaigns," read the "Labor Relations" section of its website, describing that branch of the company (the section was altered after The American Prospect quoted it in March).

Back in 2003, two large unions, UNITE (which later merged with the hotel and restaurant union, HERE) and the Teamsters, launched a major drive to organize 32,000 garment workers and truck drivers at Cintas, the country's largest and most profitable uniform and laundry supply company (it posted $3.4 billion in sales and $327 million in profits last year). Its longtime CEO, Richard Farmer, was a mega-fundraising "Pioneer" for George W. Bush. Cintas was sued for overcharging consumers and denying workers overtime pay--it settled both cases out of court--and was ordered by a California superior court to give employees $1.4 million for not paying them a living wage. It has also maintained unsafe working conditions (an employee in Tulsa died recently when caught in a 300-degree dryer) and, according to union officials, has used any means necessary to block the organizing drive. According to worker complaints documented by the unions, management fired employees on false grounds, vowed to close plants and screened antiunion videos. A plant manager in Vista, California, threatened to "kick driver-employees with his steel-toed boots," according to a complaint UNITE HERE filed with the National Labor Relations Board (NLRB). To put a soft face on its harsh tactics, Cintas hired Wade Gates, a top employee in B-M's Dallas office, as its chief spokesman. Gates coined Cintas's shrewd response to labor: "the right to say yes, the freedom to say no," which has been repeated endlessly in the press. In a speech at USC Law School last year, he outlined Cintas's strategy, calling for an "aggressive defense against union tactics." Says Ahmer Qadeer, an organizer for UNITE HERE, "It's the Burson influence that's made Cintas much, much slicker than they were." The unions have won two NLRB rulings against Cintas, but for four years the company has continued to resist the organizing campaign. Penn disclaimed any responsibility for B-M's activities before his arrival at the firm, and he told The Nation he has "never personally participated in any antiunion activity," even though B-M's antilabor arm is still operating under his tenure. (Penn added a personal note: "My father was for many years a union organizer in the poultry workers union.")

In 2004 Hillary Clinton asked for an investigation into whether Cintas had received preferential regulatory treatment from the Environmental Protection Agency in return for giving large political donations to President Bush. Union officials say she's been supportive of their organizing drive. She's a co-sponsor of the Employee Free Choice Act, which would let workers form unions if a majority sign cards authorizing representation, thus avoiding coercion and intimidation during union election campaigns (Cintas bitterly opposes the EFCA). She told the International Association of Firefighters recently, "I believe that it is absolutely essential to the way America works that people be given the right to organize and bargain collectively."

Hillary apparently sees no contradiction between her advocacy and the antiunion work of her chief strategist's company. "Clearly not," says spokesman Wolfson. "I don't think it reflects on her at all. Mark's work away from the campaign is Mark's work, and his campaign work is separate from that."

Penn recently told the Washington Post, in a largely flattering profile, that he'd been "cleared of all client responsibilities, except for Microsoft, for the duration of the campaign." Microsoft is a strange exception, given that it was the corporate entity the Clinton Administration challenged most directly. Moreover, Penn has no plans to take a formal leave from B-M. (Because B-M is a subsidiary of the WPP Group, a British company, it doesn't have to report its CEO's salary or ownership stake in the company.) George W. Bush forced Karl Rove to sell his direct-mail business in 1999, but don't expect a similar move from Hillary. Her campaign pays Penn's polling firm, which is part of B-M. "Senator Clinton is no different, frankly, from Mark's other clients," Howard Paster says. "Burson-Marsteller is a lot bigger firm than Senator Clinton. There's a whole 'nother life we live."

• « Previous
• 1
• 2
• 3
• 4
• 5
• Next »

• Get The Nation at home (and online!) for 68 cents a week!
• If you like this article, consider making a donation to The Nation.
• Reprint this article. Click here for rights and information.